18 Jun 2013 11:30
18 June 2013
W Resources Plc
("W" or the "Company")
La Parrilla JORC Resource Increases 30% to 47 Million Tonnes at 0.09% WO3
W Resources (AIM:WRES), a tungsten and gold exploration and development company, announces a 30% increase in the Australasian Joint Ore Reserves Committee ("JORC") compliant Inferred Resources at its La Parrilla Mine in Spain to 47 million tonnes at 0.09% WO3at a 0.04% cut-off grade in the existing mine area. In addition, further potential to increase the resource has also been identified as an Exploration Target in the extension exploration areas drilled in the last 12 months.
Over the last three months Golder Associates Pty Ltd ("Golder") has completed an extensive review of the geological information of the La Parrilla Mine and the extension area. The review resulted in an upgrade in the size of the existing mine JORC compliant resources in the existing pit. Higher grade zones in the middle of and also adjacent to the existing historic pit were highlighted as part of the review. The mine resources are set out in the table below:
Inferred Resources (JORC) Million Tonnes @ 0.04% WO3 cut-off grade. W has option to acquire 100% of mine | ||||
Tonnes (Mt) | Tonnes (Mt) Grade WO3 % | Tonnes (Mt) Grade Sn % | Contained Metal WO3 (t) | Contained Metal Sn (t) |
46.92 | 0.09 | 0.009 | 39,882 | 4,270 |
In addition to the above JORC Inferred Resource, a preliminary geological model has been built for the extension exploration area based on the early 2013 extension drilling campaign results. The extension Exploration Target is large (13-18 million tonnes) at a grade of 0.06% to 0.08% WO3 but there is currently insufficient information to classify this area as a Mineral Resource (as defined by JORC, 2012). The potential tonnage and grade of the Exploration Target are conceptual in nature and it is uncertain whether further exploration will result in conversion to a Mineral Resource.
Further targeted drilling to delineate a JORC compliant Mineral Resource from the current unclassified Exploration Target will be completed later in 2013, after production at the tailings project has commenced. Focus will be given to the target higher grade areas adjacent to the existing historic pit as these are at surface and have the potential to be incorporated in the initial mine development plan.
Commenting on the results, W Chairman Michael Masterman said, "At 47 million tonnes La Parrilla is now one of the largest tungsten deposits outside China. The 30% increase in the Inferred Resources in the existing mine is an exceptional result. The report and 3D models give W the capacity to focus on the high grade areas at the surface of the current pit and adjacent to the existing mining pit which show potential for early surface mine development. Additional drilling will be completed later this year on these targets and the northern extension. We see significant potential to add large JORC classified Mineral Resources and importantly higher grade at surface zones for initial mining."
The Company has an exclusive option on the La Parrilla Mine, which it can exercise by completing a series of staged option payments.
Development of La Parrilla tailings is advancing on schedule. All of the key contracts including civil works have been signed, key long lead equipment has been ordered and on site construction is set to commence in July 2013.
In addition, the Company is also advancing its programmes at Régua, and Tarouca, its tungsten exploration projects in Portugal.
A copy of the La Parrilla Project Mineral Resource Estimate prepared by Golder is available on the Company's website at www.wresources.co.uk
Enquiries:
W Resources Plc | Grant Thornton UK LLP - Nomad |
Michael Masterman | Colin Aaronson / Melanie Frean / Jen Clarke |
T: +44 (0) 20 7193 7463 | T: +44 (0) 20 7383 5100 |
www.wresources.co.uk | |
Simple Investments - Broker | Gable Communications |
Andy Thacker / Nick Emerson | Justine James |
T: +44 (0) 1483 413500 | T: +44 (0) 20 7193 7463 |
www.simple-investments.co.uk | M: +44 (0) 7525 324431 |
About La Parrilla
The La Parrilla project site is situated in the Extremadura region of southwest Spain, in the Provinces of Caceres-Badajoz, approximately 310 km southwest of Madrid. The site is accessed directly from the highway along a 3 km asphalt road and is serviced by electricity and water. The project comprises a tungsten mine and a tungsten tailings project. The historic mine resource estimated by SRK in 2008 is 36.0 million tonnes at 0.09% WO3, making it one of the largest tungsten deposits in the western world.
With the final approvals granted at the La Parrilla tailings project in January 2013, by the Mining Department of the regional authority of the Junta de Extremadura, the Company is targeting first production in H2 2013. Annual plant feed will be 330,000 tonnes and annual production is anticipated to be 28,000 MTU Tungsten (W) and 26 tonnes Tin (Sn), which will deliver over €7million per annum in revenue at current tungsten and tin prices.
The price of tungsten has increased rapidly over the last 3 years by more than double. The La Parrilla tailings deposit and tungsten mine development offer a low cost, high margin resource development opportunity for W Resources.
W Resources Plc changed its name from Caspian Holdings Plc in July 2012, to align with its revised strategy focussing on projects in the mining sector.
Technical information in this report has been prepared in accordance with the JORC Code and approved for inclusion by Mr Fernando de la Fuente, and Dr. Sia Khosrowshahi.
Mr Fernando de la Fuente is a "qualified person" in respect of the AIM Rules for Companies with over 38 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC.
Dr Sia Khosrowshahi is the Competent Person responsible for the geological interpretation (wireframe model), Mineral Resource estimation and classification of La Parrilla Tungsten Deposit. He is a full-time employee of Golder Associates Pty Ltd and a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Dr Khosrowshahi has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'